EUR/USD and Gold Rates Edge Higher as US Dollar Retreats

EUR/USD and Gold Rates Edge Higher as US Dollar Retreats

Equity market’s rally weakens, while markets await the coronavirus vaccine’s approval. How EUR/USD and Gold started this week?

Slowing Down Rally

Global stock markets rally decelerated on Monday on new US-China renewed tensions as the US prepares to impose new sanctions on some Chinese officials. On Friday, the US economy gave an alarm signal as created 245K jobs much lower than the expected 469K, this pointed out the need for a better than the $500 billion stimulus-package some Republican have been trying to sell and makes the $900 Billion-proposal more likely.

Last week, the UK was the first country to approve the coronavirus vaccine followed by Bahrain, and this week the US is expected to give the green light to deploy the vaccine on Friday, aiming that every American to be able to have the vaccine by Q2-2021.

Stock Market

Change %

S&P 500

+0.6%

Dow Jones

+0.6%

NASDQ

+0.3%

Japan 225

+0.5%

DAX 30

+0.5%

FTSE 100

+1.1%

CAC 40

+0.9%

EUR/USD and Main FX Markets

The greenback price fell last week on the back of weak US job data, therefore more stimulus is expected from the Fed especially after Powell's statement that the central bank would tolerate increases in the inflation rate until the employment target is achieved. At the start of December, the US dollar index broke below the September 1 low at 91.71 and edged lower eyeing a test of 89.45.

The Euro benefited from the better-than-expected manufacturing PMI numbers 53.8 with a weaker US Dollar price. The EUR/USD hit on Friday an over two and a half years high at 1.2176 then retreated, a close above the high end of the technical resistance at 1.2148 could send the price towards the monthly resistance level at 1.2355 (November 2014 low).

The British Pound investors' eyes are on the last attempt of the EU-UK negotiators to reach a fair deal this week. The GBP/USD opened this week with a downward gap at 1.3414 eyeing a test of the low end of the current trading zone 1.3185 – 1.3460.

Gold and Oil

The Oil upward trend remained in place driven by an OPEC+ production deal and hopes that the US stimulus package combined with the coronavirus vaccine rollout could boost demand in 2021. Nonetheless, Libyan output increase and the possible incorporation of Iranian oil under Biden’s presidency keeps the lid on the Oil price. The Brent Crude technical outlook remains positive while above $46.47, a close below that level changes it to neutral.

The Gold benefited from a weaker US Dollar and rallied above $1,796 eyeing a test of $1,861, a close above this level changes the precious metal outlook from negative to neutral and may cause a rally towards $1,921/oz.

Looking Ahead

Not much today on the economic calendar, investors await the Canadian Ivey PMI number of November at 4:00 PM (GMT).

Sources: Bloomberg, Reuters

Maklumat/penyelidikan ini disediakan oleh Mahmoud Alkudsi dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.